Daiichi KensetsuTSE:1799 -1.20%72 Operating Margin % is 10.48% as of Mar. 2026, which is 13% above its 10-year median of 9.27. GuruFocus rates TSE:1799 with a GF Score™ of 72/100 and a GF Value™ of 円2,781.91 (Modestly Overvalued). Among 1,767 Construction companies, Daiichi Kensetsu ranks better than 75.78% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Daiichi Kensetsu Operating Margin % Related Terms
Daiichi Kensetsu Operating Margin % Historical Data
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The historical data trend for Daiichi Kensetsu's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSE:1799 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Daiichi Kensetsu's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Daiichi Kensetsu Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Daiichi Kensetsu's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Daiichi Kensetsu's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Daiichi Kensetsu's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Daiichi Kensetsu (TSE:1799) has a Operating Margin % of 10.48% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Daiichi Kensetsu and its competitors. This is 13% above median its historical median of 9.27. Over the past decade, Daiichi Kensetsu's Operating Margin % has ranged from 6.54 to 12.40. According to the industry distribution chart, Daiichi Kensetsu ranks #428 out of 1767 companies in the Construction industry, placing it in the top 24.2%.
Is Daiichi Kensetsu's Operating Margin % too high?
Daiichi Kensetsu's current Operating Margin % of 10.48% is 13% above median its 10-year median of 9.27. Over the past 10 years, this metric has ranged from a low of 6.54 to a high of 12.40. The Construction industry median Operating Margin % is 5.89. Daiichi Kensetsu's value of 10.48% is 77.9% above this industry median. Based on the distribution chart, Daiichi Kensetsu ranks #428 out of 1767 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Daiichi Kensetsu has a GF Score™ of 72/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Daiichi Kensetsu's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Daiichi Kensetsu ranks #428 out of 1767 companies for Operating Margin %. This places Daiichi Kensetsu in the top 24% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. Daiichi Kensetsu's value of 10.48% is 77.9% above this benchmark. Historically, Daiichi Kensetsu's own Operating Margin % has ranged from 6.54 to 12.40 over the past decade. While the company's 10-year median is 9.27 vs. the industry median of 5.89, Daiichi Kensetsu has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Daiichi Kensetsu's current Operating Margin % of 10.48% is 77.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Daiichi Kensetsu and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Daiichi Kensetsu's current Operating Margin % is 10.48%, which is 13% above median its own 10-year median of 9.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Daiichi Kensetsu stock overvalued right now?
Based on GuruFocus' analysis, Daiichi Kensetsu (TSE:1799) is currently considered Modestly Overvalued. The stock's GF Value™ is 円2,781.91, compared to a current price of 円3,285.00 — trading 18.1% above its estimated fair value. The current Operating Margin % is 10.48%, which is 13% above median its 10-year median of 9.27 and 77.9% above the Construction industry median of 5.89. Daiichi Kensetsu's overall GF Score™ is 72/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Daiichi Kensetsu (TSE:1799), the current Operating Margin % is 10.48% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Daiichi Kensetsu (TSE:1799) Overvalued in 2026?
Based on GuruFocus' analysis, Daiichi Kensetsu stock appears to be overvalued.
The current stock price of 円3,285.00 is trading 18.1% above its estimated GF Value™ of 円2,781.91.
GuruFocus considers Daiichi Kensetsu to be Modestly Overvalued.
Key valuation signals for TSE:1799:
Operating Margin %: 10.48% (13% above median its 10-year median of 9.27)
GF Value™: 円2,781.91 vs. price of 円3,285.00 (18.1% above fair value)
Industry Position: 77.9% above the Construction median (#428 of 1767)
No single metric tells the full story. See the TSE:1799 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Daiichi Kensetsu Corp is engaged in construction and civil engineering works. The company also provides planning, designing, surveying, supervision, and consulting services for civil engineering. The company is also engaged in the manufacture, inspection, and sale of materials for civil engineering, construction, and railroad construction.
72GF Score
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